Question

If you buy a car for $10,000 with a 3year loan at 8%interest, what is the total interest on the loan ?

Answer 1

Answer on the Question #74671, Economics / Economics of Enterprise

If you buy a car for $10,000 with a 3 year loan at 8% interest, what is the total interest on the loan?

Calculate total interest with the formula of compound interest:

$$P_i = P \left(1 + \frac{r}{100\%}\right)^n$$

P – amount of loan;

r – interest rate;

n – period of time.

$$P = 10000 \times (1 + 8/100\%)3 = 12597.12\$ - primary loan with total interest.$$

Total interest is 12597.12\ - 10000\$ = 2597.12\

Answer provided by https://www.AssignmentExpert.com